Hungary PM says IMF is lender, but not economic policy guide

By IBT Staff Reporter On 08/30/10 AT 1:56 PM

It is in Hungary's interest to sign loan agreements with the IMF if necessary but it is not in the country's interest to have economic policy agreements with the Fund, Prime Minister Viktor Orban said on Monday.

According to a video of part of his speech posted on local news site Index.hu, Orban -- speaking to ambassadors -- said Hungary needed to pursue a more pro-active foreign policy.

On Hungary's relations with the IMF Orban said:

We interpret our agreement with the IMF -- our participation in the IMF's system of cooperation -- as a borrowing agreement. The IMF sees it as an economic policy agreement. This is not in our interest, Orban said.

The Hungarian interest is that if necessary we should make loan agreements with the IMF on a regular basis. It is not in our interest to sign economic policy agreements with the IMF, as that unnecessarily limits the room of manoeuvre of ...the Hungarian government, Hungarian parliament and lawmakers.